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PORTLAND, Ore. - Blockbuster Inc. has agreed to pay about $630,000 to settle claims by 47 states and the District of Columbia that the movie rental chain deceived consumers with its "No Late Fees" campaign, the Oregon attorney general said Tuesday.

The agreement, disclosed by the office of Oregon Attorney General Hardy Myers, also requires Dallas-based Blockbuster to make refunds to consumers who claim the campaign misled them into thinking they could keep the video or DVD for as long as they liked.

Many consumers were angry to discover that overdue game and film rentals were automatically converted to a sale on the eighth day after the due date. If they then tried to return it, they were charged a $1.25 restocking fee.

According to the agreement, Blockbuster will have to make refund to refund consumers who were either charged the restocking fee, or else paid the full price of the movie they rented.

download Blockbuster Refund Request (PDF)

As part of the settlement, Blockbuster will also have to "dramatically alter" the way it advertises its no late fees policy, according to a prepared statement by Pennsylvania Attorney General Tom Corbett.

Blockbuster spokeswoman Karen Raskopf said that the "no late fees" program will continue at Blockbuster, but that the company has agreed to add signage in its stores to better explain the fine print of the program.

"We think our original communications were very clear but we're happy to do whatever we can to add additional communication to better inform our customers," she said.

The company has already added the signs to most of its stores, she said, as well as created a No Late Fee information center, where customers can read up on the program. She added that 96 percent of Blockbuster's customers return the movies within the seven day grace period. "Less than four percent of our customers are going to auto-purchase program."

Blockbuster launched the no late fees program at its 4,600 U.S. stores on Jan. 1, in the wake of online subscriber Netflix Inc.'s success. Netflix allows consumers to rent up to three DVDs per month for a flat monthly fee of $17.99. They can keep the movies for as long as they want - but can only get a new one once they return the ones they have already viewed.

The states who are not included in the settlement are New Jersey, which has a pending separate suit, and Vermont and New Hampshire.

I gotta say, I wish my video store would take on this "after it's late so many days it's yours" thing. See, stupid people like me either forget they got movies or are too lazy to drive the half an hour to take them back, and sometimes end up paying more in late fees to RENT the movie then it would cost to buy it. *sigh* yes, I am an asstart, thank you for noticing.

Originally posted by Count Bishula: I gotta say, I wish my video store would take on this "after it's late so many days it's yours" thing. See, stupid people like me either forget they got movies or are too lazy to drive the half an hour to take them back, and sometimes end up paying more in late fees to RENT the movie then it would cost to buy it. *sigh* yes, I am an asstart, thank you for noticing.

You are wrong. Blockbuster charges anywhere from $30 to $90. Why you ask. because they have to pay more for a movie to rent it out. I was hit with these fees. [censored] bullshit when you realise they are competing with netflix. With netflix there truely is no late fee.

why would they do that? that makes way too much sence. first they smack ya with the "you've bought it cause u've had ot for 8 days fee" then they get ya with a "now u have to pay us more to put it back on the self cause u finally returned it 8 days later fee".

blockbuster is so laughable thinking they can actually compete with netflix. i'm sorry but i can take out 5 movies at a time for $21/month and that's all i have to pay. you dont even have to pay for it if it gets lost in transit to or from. with blockbuster if they lose it they still charge you for it (cant have an account with them thanks to them losing 4 movies that i returned).

*Hell hath no fury like a womens anger and damn be the fool who gets in her way*

do it perg. gizmo and i have been signed up for about 4 or 5 months. it's well worth the money and once they recieve the moives back you get new ones with-in a business day. in your queue u can have up to 500 movies and they have everything! if your lucky with some of the new movies if you have it as number 1 on your list u sometimes get it the day before it's released in stores

*Hell hath no fury like a womens anger and damn be the fool who gets in her way*

I love netflix. I have yet to have to wait for someone to return a movie. I am never without something new to watch. It is damn sure cheaper than Cockbuster. I actualy did have a movie get lost on it's way to me. I told them I never got it. Did I get a fee? Nope, I got a fresh copy in 2 days in my mailbox.